“Given the rehash of familiar remedies and mud-slinging that dominates the debate, I thought I would use my dinner companion’s invitation to raise at least one issue central to finding a solution to the current mess. Consider the “too big to fail” problem. The four largest US banks hold close to $4,000bn in deposits, representing about 40 per cent of all bank deposits in America. Some financial institutions are still so large and interconnected that their failure would be disastrous for the global economy. Greek debt is such a big problem because a default might make a bank that is too big to fail to actually fail.”
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